The undersigned is directed to refer to Para No. 2 and Annexure-III to this Department’s O.M. dated 24.10.1997 wherein the rates of DA payable to the employees of CPSEs following CDA pattern pay scales, who are governed by HPPC recommendations had been indicated.

2. In continuation of this Department’s OM of even number dated 29.10.2013, the ratesof Dearness Allowancew.e.f. 01.01.2014 payable to the employees of CPSEs governed by the recommendations of HPPC, which have not revised their pay scales in terms of DPE O.M. No. 2(54)/2008-DPE(WC) dated 14.10.2008 may be as follows:-

a) In case of CPSEs who have not allowed the benefit of merger of 50% of DA with basic pay as contained in DPE O.M. dated 24.05.2005 to their employees, the DA payable may be enhanced from existing rate of 233% to 250%.

b) In case of CPSEs who have allowed the benefit of merger of 50% of DA with basic pay as contained in DPE O.M. dated 24.05.2005 to their employees, the DA payable may be enhanced from existing rate of 183% to 200%.

3. The payment of Dearness Allowance involving fractions of 50 paise and above may be rounded off to the next higher rupee and the fractions of less than 50 paise may be ignored.

4.. All administrative Ministries/Department of Government of India are requested to bring the foregoing to the notice of the Central Public Sector Enterprises under their administrative control for action at their end.